Duluth/North Shore Sanitary District – Board of Managers

Meeting # 72

 

Date: January 11, 2006                        

Board Members Present:  Lars Fladmark, Scott Smith, Kevin Bovee, Mary Ann Sironen          

 

Board Members Absent:    Katie Kuettel

 

Others Present:  Clare Carpenter, Mary Frances Skala, Scott Harder, Eric Appelwick, Nate Grayson, John Miller, Andy Pratt, Jeff Cook, Duane Harold, Brian Malarski, Jim Anklam, Missy Kesanen and 2 individuals from C & W Development

 

Minutes to:       Jim Anklam, Eric Appelwick, Mike Appelwick, Darryl Bathel, Dan Belden, Bruce Berg, Kelli Boedigheimer, Kevin Bovee , John Bowen, Clare Carpenter, Rick Certano, Jeff Cook, City of Duluth, Duluth City Council, Duluth Township, Lars Fladmark, Greg Garmer, Jane Gilbert, Mark Gottwald, Wendy Gustofson, Scott Harder, Mark Herman, Duane Herold, Lynn Ann Hollatz, Kevin Holm , Dan Jacobson, Laurie Johnson, Al Katz, John Kessler, Lakewood Township, Nancy Larson-St. Louis County, Sue Lawson, Patti Logergren, Mike Mahoney, Joe McGaver, Don McTavish, Larry Moon, Dan Neiman, Mel Olson, Wayne Parson, PLAWCS, David Pierson, Tom Pulse, Yvonne Rutford, Mark Schaus, John Schifsky, Dale Schroeder, Dick Sigel, Mary Ann Sironen , Mary Frances Skala, Scott Smith, Kurt Soderberg, Tim Strom, George Sundstrom , Carol Surine, Peg Sweeney, John Thomas, Nelson Thomas, Jonathon Thornton, Pete Weidman, Robin Whaley, Sandy Woolum

 

Minutes by:       by Missy Kesanen and edited by Mary Ann Sironen

 

Item

Discussion

Conclusion/Actions

Roll Call and Election of Officers

A quorum of Board members is present.

Motion by M. Sironen and seconded by  K. Bovee to nominate Lars Fladmark for Chair. Motion by M. Sironen and seconded by S. Smith to nominate K. Bovee as Vice Chair.  Motion by S. Smith and seconded by K. Bovee to nominate M. Sironen as Secretary.  Motion by M. Sironen and seconded by K. Bovee to nominate S. Smith as Board Member.  Motion by M. Sironen and seconded by K. Bovee to nominate S. Smith as interim Treasurer.  All unanimously approved.

 

Officers for 2006:

Chair – Lars Fladmark                  Vice-chair – Kevin Bovee

Interim Treasurer – Scott Smith     Secretary – Mary Ann Sironen

Agenda

Motion by K. Bovee and seconded by M. Sironen to approve the Agenda.

Minutes

M. Sironen brought to attention of a correction to the motion for the application.  Motion was made by M. Sironen and not M. Skala

M. Sironen will correct.

Motion by S. Smith and seconded by K. Bovee to approve the December minutes.  Unanimously approved.

Treasurer’s Report

C. Carpenter distributed the list of outstanding invoices.

  • KRLSD payment came in.
  • Delinquent Bills are being pursued

 

Motion by K. Bovee and seconded by M. Sironen to pay the current invoices as listed.  Unanimously approved.

Due to the revision of the pay request for Contract B & C, an amended motion was made to back out the 5% retainage.  Amended motion by L. Fladmark and seconded by M. Sironen.  Unanimously approved.

 

 

 

Change Orders

    1. B-14 $999,593.33
    2. C-1   $160,619.00

S. Harder discussed the above change orders and the impact on the budget.  The increase in B-14 is due mainly to work not included in the original contract along with silt fencing, rock and driveway replacement.  15-20 new homes have been added since the contract was signed. These customers will be billed for the actual cost of bringing sewer service in to them. This amount will offset some of the B-14 amount. The increase in C-1 was for removal of additional septic tanks encountered and need for more electrical cable from panels. The work for both change orders has been done and was included in the payments to the contractors.  They are not additional anticipated costs.

Motion by S. Smith and seconded by K. Bovee to approve Change Orders B-14 and C-1.  Unanimously approved.

Public Comments

None

Updates
  1. I&I Inspections – Jeff Cook.  Done for the present time.
  2. Easements – John Miller is working on completing.
  3. KRLSD – payment for that share of the main line has been received.  There are no issues pending at the present time. 
  4. WLSSD Allocation status – M. Skala noted that there are no changes in the allocation, although sampling requirements have changed as noted in II. a. of Exhibit C.
  5. Building Permits – M. Sironen stated there was nothing from Duluth Township.  S. Smith talked about the Safe Harbor Estates which will consist of 14-16 sites.  Currently listed as being single family dwellings.

 

4.  Motion by S. Smith and seconded by M. Sironen to approve the WLSSD allocation agreement change, sign and return to WLSSD.  Unanimously approved.

Communication/Correspondence
  1. M. Sironen spoke with homeowner Jeff Pierson who has had water coming into his back yard since blasting occurred for the main line.  J. Cook talked of water/ice problems, but said that it is hard to determine where the problem originates.
  2. Dodges Log Lodges – area has been drained/trenched.
  3. Assisted Living House – 2 bedroom units, 20 bedrooms
  4. Capacity Availability Fee – S. Harder spoke.

6.    Diamond Willow assisted living residence's permit request is being appealed with the City of Duluth.

Currently on the “punch-list” to be reviewed in the spring.

E. Appelwick is currently aware of and working on the drainage issues.

 

Need to look at how WLSSD fees are compared to DNSSD fees.  Fees need to be collected when connected.  Committee work is needed.

Engineers/

Construction Report

Jim Anklam of Ayers was present.  Mel Olson has left their company to join Frontier Pipeline and has relocated.  Jim will be the representative to D/NSSD the maintenance contract and will be included on the project team.

Well Set-Backs:

  1. Nokomis – The line was rerouted to meet MDH well set-back requirements
  2. Superior Inn – MDH will allow D/NSSD to televise the well and document the depth.  If at least 15 ft. casing is encountered and it passes, variance will be granted to leave the lateral line in its present location.
  3. Farley – Rasmusson Well Drilling is scheduled to abandon the old well on January 12, 2006.

Construction Progress:

Certificate of Substantial Completion with “punch-list” was issued December 14, 2005.  Completion of the “punch-list” is required by June 15, 2006.

  • Contract C pay request $10,335.27 (all retainage)
  • Contract B pay request $104,778.03 (retainage $94,071.06)

 

M. Skala stated that DNSSD does not need a new contract, but that J. Anklam needs to draft an amendment to be approved by the Board.

 Motion by M. Sironen and seconded by S. smith to replace Mel Olson’s name with Jim Anklam.  Unanimously approved.

 

Discussion about retainage.  L. Fladmark suggested keeping the 5% retainage. 

Motion by S. Smith and seconded by K. Bovee.  Unanimously approved.

 

J. Anklam will revise pay request for Contract B to be $10,706.97.

NTS Report:

E. Appelwick distributed the January report to the Board.

  • Nisswandt is scheduled to be hooked up in the spring.
  • Sampling event to verify loadings.
  • Bid on “Air Relief Valve” to be forwarded to the Board.
  • Post Installation Inspections completed.
  • Control Box Readings have been taken.
  • Will be attending informational meeting with N. Grayson for the Stoney Point Cottages.  Eric will report at what capacity they will be using and where DNSSD is at with the allocation.  Discussion on how the ownership structure is not straight forward.  M. Skala said that language is needed in the declaration.  Eric will report back to the Board.
  • Skip Hildebrandt has not returned call regarding the rejection of his proposal.
  • Discussed the need for a Fire Number on the Retention Tank.  Eric to call Sharon Lewerer at 911 Communications.
  • I&I – Eric working on reporting and sending letters.
  • Chris James requested a pamphlet on Sewer Back-up Liability.
  • Have experienced some billing questions.  All have been acted upon.
  • Website redesign and web hosting proposals given to the Board.  Eric to talk with Bruce Berg.  Budget to be posted on the website.  Suggested that all files be pdf format for safety factor.
  • Newsletter is almost done.  Eric asked that any additions be emailed to him.  To include exact verbage on how taxes are calculated so that customers can calculate their portion.
  • NTS Duluth office will be moving to a new location in February.  Need to amend By-laws to include new address, all else will remain the same.
  • Ryan Road odor problem – A new media was received 1/6/06 ($2600.00).  The old media was removed and found that there was condensation present.  The new media will be installed once the condensation has been eliminated.
  • There were only 3 call-outs for December.
  • Eric handed out the Districts “Contingency Manual”.

Legal Issues
  • Ordinance for Extensions
  • Sewer Back-up Liability – Per M. Skala, liability is not at level it should be.  A. Pratt gave limits of new policy and the cost.  A 2 million Umbrella with 1 million/occurrence would cost $1,457.00 per year.
  • NS Bank of Commerce “Authorized Signatures”
  • Malarski action – Brian Malarski spoke of the upcoming court date set for 1/23/06.  He stated that DNSSD violated the contract by not giving him a 90 day written notice.  He is not opposed to being hooked-up, he just needs the 90 day notice so that he can arrange to have a service put in his basement.

To be discussed at Rates/Changes

 

Motion by K. Bovee and seconded by S. Smith to approve the new liability policy.  Unanimously approved.

 

 

Motion by M. Sironen and seconded by S. Smith to approve.  Unanimously approved.

 

Mr. Malarski requested copies of all minutes where his litigation was discussed.  M. Skala stated that this must be done in writing.  Moved any further discussion to Closed Session.

Other

Capital Assessment Plant

 

Pursuant to the “open meeting law” in Minnesota Statutes, Section 13D.05, and on the basis of attorney-client privilege, the Board will close this meeting to discuss the continuation of litigation versus Brian and Jennifer Malarski.  Only the members of the Board and legal counsel will be allowed during this portion of the meeting.  This meeting is now closed.

Meeting adjourned.  Next meeting is at 0700 at French River Lutheran Church.

 

Approved  (date):                                                                                                                                            

                                                Chair                                                    Secretary